DUFF & PHELPS: CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY $60 MILLION POLLUTION CONTROL REVENUE BONDS, SERIES 1993 A RATED 'A'
CHICAGO, July 20 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A' (Single-A) to California Pollution Control Financing Authority's issuance of $60 million of Series 1993 A pollution control revenue bonds (Pacific Gas and Electric Company). The bonds are payable solely from revenues from a loan agreement with Pacific Gas and Electric and secured by a like amount of Pacific Gas and Electric's first mortgage bonds. Pacific Gas and Electric's management has taken several steps to better prepare the company for a more price sensitive, competitive environment. Commitments include eliminating 3,000 positions by 1995, freezing retail electric rates through the end of 1994, and foregoing recovery of certain revenue adjustment entitlements. The company also is pursuing an economic stimulus rate to attract and maintain businesses in the service territory. Pacific Gas and Electric's credit protection measures are expected to remain satisfactory. However, the regulatory environment in California shows increasing signs of uncertainty. Importantly, the ratings assume satisfactory treatment of the pending gas cost regulatory action, reasonable settlements of Canadian gas take-or-pay issues, and recovery of such costs. Pacific Gas and Electric is one of the nation's largest investor- owned electric and gas utilities, serving 11.8 million people in northern and central California. -0- 7/20/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: California Pollution Control Financing Authority ST: California IN: ENV SU: RTG
WB -- NY114 -- 3606 07/20/93 17:18 EDT
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|Date:||Jul 20, 1993|
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